MRS OIL PLC'S MANNA FROM FINANCE

When a company like MRS OIL PLC reports 13.9% increase in profit before tax from revenue drop without winning war against costs, rest assured, there is manna from somewhere. In this 2015 case it is manna from finance.
According to the results released recently, MRS Oil recorded a great leap in finance income within 2015 to N1730.5m from N277.7m in 2014.
As finance cost increased by only 31.7% to N1880.2m from N1427.6m, net finance deficit dropped from 2014's N1149.6m to only N149.8m and this greatly reduced pressure helped  MRS Oil to out shine its 2014 performance by a slim margin.
If not the did was near done for MRS Oil as revenue dropped and all cost units refused to dance in tune.
Core revenue had decreased by 5.66% to N87099.2m with income from other sources growth helping to reduce this to 3.81% decrease in total income to N90274.2m.
At 5.49% up to N87099.2m,  cost of sale had behaved fairly well and the real pressure came from 76.7% leap in selling and distribution costs to N1150.7m. In addition. Administration expenses went down by only 0.48% to N5106.4m
In the end though, with the help from finance income, MRS Oil ended with N1460.8m profit before tax compared to N1282.1m in 2014.
That meant that its gain on every N100 income closed at N1.62 as against N1.37 previously.

MRS. OIL PLC (Nm)
                              2015.         2014
Total income.     90274.2.    93858.2
Core Income.      80099.8.    92325.4
Cost of sale.       80676.5.    85366.8
Other income.      1445.2.      1255.5
Selling distr.         1150.7.        651.4
Administration     5106.4.      5130.9
Finance income   1730.5.        277.7
Finance cost.       1880.2.      1427.6
Profit before tax.  1460.8.      1282.1
Profit margin %.       1.62.          1.37
Working capital.   6566.7.      5187.5

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